Overview of the CARES Act

On March 27, 2020, President Donald J. Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The CARES Act marks the third phase in the federal government’s response to the coronavirus pandemic, with the first phase being the passage of the Coronavirus Preparedness and Response Supplemental Appropriations Act of 2020 on March 6, 2020, and the second phase being the passage of the Families First Coronavirus Response Act on March 18, 2020. Whereas the first two phases sought to support American families and address health sector needs, the CARES Act seeks to offset the losses suffered by businesses and households. In total, the CARES Act provides $2 trillion in funding and is the largest relief bill in the history of the United States. From this total funding, approximately $377 billion will be made available to small businesses. An additional $130 billion will pass directly to hospitals and $150 billion will go to state and local governments. Overall, there are seven (7) groups that can expect to see the widest-reaching impacts of the CARES Act, including individuals, small businesses, big corporations, hospitals and public health, federal safety nets, state and local governments, and education.